GlaxoSmithKline is a British company working within health care. Their main industry is Biotech & Pharma and the sub-industry is Large Pharma [1] .The company develop medicines and vaccines for example respiratory and infectious diseases, central nervous system diseases and cancer [2] . In 2013 the company had approximately 99 000 employees across 115 countries and the turnover were £26.5billion [3] . In the same year the company’s best-selling product was the asthma drug Advair/Seretide, the sales of the drug were $8.25billion [4] . GlaxoSmithKline is listed in both New York Stock Exchange and London Stock Exchange.
History
The first steps for the company GlaxoSmithKline were taken 1715 when Plough Court Pharmacy was established in London [5] . Under almost 300 years the company grew with the help of different joint ventures. In the year 2000 the company got the shape it has today, when Glaxo Wellcome and SmithKline Beecham joined together [6] .
GlaxoSmithKline in Finland
In Finland GlaxoSmithKline have about 110 employees and the company’s sales were approximately 99 million euro's (2013) [7] . Their office is located in Espoo.[8] According to Lääketeollisuus ry GlaxoSmithKline was the second largest manufacturer and marketer of medicines in Finland in 2013, having a wholesale of 131 Million € [9] .
Fight against corruption
The company has some tools which they use to fight against corruption. The company’s mission, values and principles are clarified through their codes of conduct[10] . The company also participates in the Anti-Bribery and Corruption (ABAC) Programme. The programme includes an ABAC handbook. The handbook is designed to “assist internal and external parties to understand corruption risk and identify people’s responsibilities to actively combat both real and perceived corruption” [11] .
Criticism
GlaxoSmithKline has been guilty of several offences. In 2004 in Italy at least 273 employees of GlaxoSmithKline and more than 4000 doctors had been put on trial. The corporation had spent on a four year period 228 million € on bribing of doctors, chemists and others. The bribes varied from cameras, computers and holidays to cash payments. Evidences showed that GlaxoSmithKline had approached specialists and doctors directly to persuade them to prescribe the company’s cancer drugs. In the most serious case doctors and pharmacists have been involved in promoting Hyctamin, a drug used for treatment of lung and ovarian cancers. It is estimated that the investigation did cost GlaxoSmithKline’s Italian subsidiaries about 400 Million € in lost sales per year. According to a British-based pharmaceuticals analyst this kind of practice is common among drug companies. Further he said “For example, doctors may be given ‘research grants’ – but there are no limits on how they can spend them”.[12]
In addition in 2012 they pleaded guilty in the U.S. for unlawful promotion of certain prescription drugs and they had also reported false price practices [13] . The judgment of this offense was a fine of $3billion [14] . In 2010 they agreed to pay $750million to settle civil and criminal complaints stemming from a whistleblower's revelations [15] . They were for example sentenced of wrong pills going to wrong bottles, a contaminated water supply and a failure to ensure sterility of anti-cancer drugs [16] . The latest scandal to face the company happened in China. In September 2014 the company got a fine of $489million for bribing doctor's [17] . The fine sounds big, but is actually only 1.1 percent of the company’s last year’s sales [18] .
Table of Contents
In General
GlaxoSmithKline is a British company working within health care. Their main industry is Biotech & Pharma and the sub-industry is Large Pharma [1] .The company develop medicines and vaccines for example respiratory and infectious diseases, central nervous system diseases and cancer [2] . In 2013 the company had approximately 99 000 employees across 115 countries and the turnover were £26.5billion [3] . In the same year the company’s best-selling product was the asthma drug Advair/Seretide, the sales of the drug were $8.25billion [4] . GlaxoSmithKline is listed in both New York Stock Exchange and London Stock Exchange.History
The first steps for the company GlaxoSmithKline were taken 1715 when Plough Court Pharmacy was established in London [5] . Under almost 300 years the company grew with the help of different joint ventures. In the year 2000 the company got the shape it has today, when Glaxo Wellcome and SmithKline Beecham joined together [6] .GlaxoSmithKline in Finland
In Finland GlaxoSmithKline have about 110 employees and the company’s sales were approximately 99 million euro's (2013) [7] . Their office is located in Espoo.[8] According to Lääketeollisuus ry GlaxoSmithKline was the second largest manufacturer and marketer of medicines in Finland in 2013, having a wholesale of 131 Million € [9] .Fight against corruption
The company has some tools which they use to fight against corruption. The company’s mission, values and principles are clarified through their codes of conduct [10] . The company also participates in the Anti-Bribery and Corruption (ABAC) Programme. The programme includes an ABAC handbook. The handbook is designed to “assist internal and external parties to understand corruption risk and identify people’s responsibilities to actively combat both real and perceived corruption” [11] .Criticism
GlaxoSmithKline has been guilty of several offences. In 2004 in Italy at least 273 employees of GlaxoSmithKline and more than 4000 doctors had been put on trial. The corporation had spent on a four year period 228 million € on bribing of doctors, chemists and others. The bribes varied from cameras, computers and holidays to cash payments. Evidences showed that GlaxoSmithKline had approached specialists and doctors directly to persuade them to prescribe the company’s cancer drugs. In the most serious case doctors and pharmacists have been involved in promoting Hyctamin, a drug used for treatment of lung and ovarian cancers. It is estimated that the investigation did cost GlaxoSmithKline’s Italian subsidiaries about 400 Million € in lost sales per year. According to a British-based pharmaceuticals analyst this kind of practice is common among drug companies. Further he said “For example, doctors may be given ‘research grants’ – but there are no limits on how they can spend them”.[12]In addition in 2012 they pleaded guilty in the U.S. for unlawful promotion of certain prescription drugs and they had also reported false price practices [13] . The judgment of this offense was a fine of $3billion [14] . In 2010 they agreed to pay $750million to settle civil and criminal complaints stemming from a whistleblower's revelations [15] . They were for example sentenced of wrong pills going to wrong bottles, a contaminated water supply and a failure to ensure sterility of anti-cancer drugs [16] . The latest scandal to face the company happened in China. In September 2014 the company got a fine of $489million for bribing doctor's [17] . The fine sounds big, but is actually only 1.1 percent of the company’s last year’s sales [18] .
http://www.laaketeollisuus.fi/sites/default/files/attachments/Tilastot/06_top_10_yritykset.pdf. Retrieved: 11.11.2014.
Hooper J. 2014. Over 4,000 doctors face charges in Italian drugs scandal. The Guardian, 27.5.2014. Available at:
http://www.theguardian.com/world/2004/may/27/italy.heatherstewart. Retrieved: 18.11.2014.
Department of Justice, 2012. Available at: http://www.justice.gov/opa/pr/glaxosmithkline-plead-guilty-and-pay-3-billion-resolve-fraud-allegations-and-failure-report. Retrieved: 17.10.2014.